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Should You Buy SMR While It's Under $20?
The Motley Foolยท 2025-12-21 11:50
Core Viewpoint - NuScale Power's stock has experienced a significant decline, dropping over 58% in the past six months, closing at approximately $17 on December 16, 2025, despite an earlier peak of $57 in October 2025, indicating high volatility and investor skepticism [2][3]. Company Overview - NuScale Power specializes in nuclear small modular reactors and currently has a market capitalization of $4.5 billion. The stock's current price is $16.07, with a day's range between $15.94 and $16.61, and a 52-week range from $11.08 to $57.42. The company has a gross margin of 64.95% [3]. Market Dynamics - The stock has faced downward pressure due to factors such as investors reducing their stakes and ongoing analyst skepticism regarding the company's commercial viability. The uncertainty surrounding demand for its products has contributed to a more than 20% decline in the stock price over the last month [2][3]. Customer Acquisition - NuScale is actively pursuing new customers, including a potential partnership with ENTRA, but the customer deal is not yet finalized. The realization of these relationships may not be evident until 2027 or later, which adds to the uncertainty surrounding the company's revenue prospects [5]. Industry Trends - The nuclear energy sector is experiencing a resurgence, particularly driven by the energy demands of artificial intelligence (AI) data centers. This trend presents a significant growth opportunity for NuScale, especially if the company can secure customers in the near term while the stock remains below $20 [6].